Intraday Market Thoughts

Archived IMT (2010.07.12)

by Ashraf Laidi
Jul 12, 2010 14:49

$80.00 OIL has not been seen since May. The frequently cited Death Cross in equities and commodities is emerging in US crude oil, as the 55-DAY MA drops below BOTH the 100 and 200-day Mas for the 1st time since October 2008. as Ive cited back in Jan 19 article http://bit.ly/8EZTO8 , death crosses are particulalrly appealing when the both the 55 AND 100 MAs are ABOVE the 200-day MA, in which case would indicate more downside potential. While the more obvious resistance stands at the 200-day MA of $77.30, the more resilient barrier is found at $78.40, represening the 61.8% retracement of the decline from the $87.21 high to the $64.21 low. Daily chart still shows a H&S pattern with interim downside target at $71.50.

 
 

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